FAQ #2 – Do I have to pay VAT?

We are looking forward to seeing you!

We continue our conversation about frequently asked questions that come up on the page or when having a phone chat. We hope that the first article on how to access an advertisement on the Facebook platform is useful to you and helps you to identify the features of the car you want much easier.

Short summary of the last article: when you see one of our posts on Facebook, look to see if it has a link attached above the pictures (the blue writing). Clicking on the blue writing will link to the ad on the website.

Today we want to discuss an issue that confuses many people when it comes to making a purchasing decision: do I have to pay VAT?

Ce este TVA-ul?

“VAT is an indirect tax borne by the final consumer of the good/service in question. VAT is a tax levied on every economic agent participating in the economic cycle of the realization of a product or provision of a service falling within the scope of taxation.” (source: wikipedia.org). In other words, every trader charges VAT on the sale of his products. This VAT can be found on invoices and even on the tax receipts issued.

VAT | Copyright @ mrfinance.ro

How does VAT apply to cars?

Applies the same as any other trader. The current VAT rate is 19%. There are also exceptions where we are talking about non-deductible VAT and VAT on margin. We will detail with some examples to better understand the situations.

Ex. 1

A vehicle is purchased that was last owned by a legal person and that legal person was a VAT payer. On the purchase invoice we see the NET price of the vehicle in question and the VAT amount. This car is subject to VAT. If the purchase is made by a VAT-registered legal person, they can deduct it. If purchased by an individual, the individual cannot deduct anything.

Ex. 2

You purchase a motor vehicle whose last owner was a natural or legal person not liable for VAT. On the purchase invoice we see that the special VAT regime applies(art. 312 of the New Tax Code). In other words, VAT is non-deductible.

Of course, there is also the situation where the car is purchased from an importer and the trader sells the car with VAT at the margin (VAT is applied to the profit margin).

Intra-Community VAT | Copyright @ slideshare.net

Cum pot plăti Netto?

The only bills that can be paid Netto are external bills. However, you should be aware that not all foreign companies do this, i.e. issue a net invoice. Most of the time, they issue one invoice stating the net price and a second invoice stating the VAT on the purchase. The customer will then pay the two invoices and recover the VAT when they receive the product.

De reținut!

All prices are VAT included! Not paying VAT can lead to tax evasion charges!

Concluzie

VAT is the value added tax charged by the state. It is not levied by the supplier of goods because they want to 😊.

VAT is payable on any product. Just like at the store. If you check your receipt, you will see that it applies to any product.

Failure to pay can lead to penalties and serious inconvenience!

Fiți precauți, informați-vă corect și luați cea mai bună decizie!